Deliveroo hails GMB union deal
DELIVEROO has sealed a landmark deal with one of Britain’s biggest unions as it seeks to fend off criticism of its gig economy model.
The food delivery app, which treats its couriers as self-employed, said it had reached a landmark agreement with the GMB that will allow the union to represent riders in pay negotiations and disputes. The deal was criticised by the IWGB union, which is challenging Deliveroo’s classification of riders as self-employed and called it a “hollow and cynical PR move”.
Under the deal, Deliveroo’s 90,000 couriers will be able to opt in to representation by the GMB, giving them rights to collective bargaining on pay as well as consultations on issues such as safety.
It is the first of its kind for gig economy workers classed as self-employed, a status that does not guarantee minimum wage or holiday pay and which Deliveroo has defended.
While Uber last year lost a years-long battle to treat its drivers as selfemployed, Deliveroo has won court rulings confirming the status and says there are key differences in its model.
Deliveroo said the deal with the GMB made clear that riders are self-employed. It includes a pay floor that guarantees couriers are paid the minimum wage when on jobs, but not when waiting one.
Will Shu, chief executive, said: “Deliveroo has long called for riders to have both flexibility and security and this innovative agreement is exactly the sort of partnership the on-demand economy should be based on.”
Mick Rix, at the GMB, said: “Riders deserve respect for the work they do; and Deliveroo deserves praise for developing this innovative agreement with GMB – a blueprint for those working in the platform self-employed sector.”
The IWGB, which is appealing a ruling that riders are self-employed in the Supreme Court, said: “Deliveroo has cynically made this backroom deal with the GMB… to protect itself in the event that it loses at the final stage.
“Deliveroo is undermining the efforts of couriers to pursue their rights through the courts.”